SMC Global hikes size of senior note issuance to $400m

SMC Global Power Holdings Corp., the power unit of San Miguel Corp., said Thursday it raised its senior capital securities issuance to $400 million from the previously approved $300 million amid higher demand from institutional investors.

SMC Global said in a disclosure to Philippine Dealing & Exchange Corp. it issued $400 million in senior perpetual capital securities with an initial rate of distribution of 7 percent per annum.

“Approval in-principle has been obtained from the Singapore Exchange Securities Trading Ltd. for the listing and quotation of the 2020 Securities,” SMC Global said. The securities are expected to be admitted to the official list of the SGX-ST on Oct. 22.

“The net proceeds of the 2020 Securities will be used for capital expenditures and investments in liquefied natural gas facilities and related assets, for the refinancing of expiring commitments of the corporation whether debt or perpetual securities, and for general corporate purposes,” SMC Global said.

The company appointed Credit Suisse (Hong Kong) Ltd., DBS Bank Ltd., Merrill Lynch (Singapore) Pte. Ltd., The Hongkong and Shanghai Banking Corp. Ltd., Mizuho Securities Asia Ltd., Standard Chartered Bank and UBS AG Singapore Bank as joint lead managers.

DB Trustees (Hong Kong) Ltd. was appointed as trustee and Deutsche Bank AG, Hong Kong Branch as paying agent for the offer, issuance and listing of the securities.

“The 2020 securities will be constituted as a trust deed by and between the corporation and DB Trustees (Hong Kong) Ltd as the trustee and will be listed on the Singapore Exchange Securities Trading Ltd.,” the company said.

SMC Global Power confirmed in August negotiations with AG&P for the construction of a liquefied natural gas terminal alongside its 1,200 megawatt Ilijan power plant in Batangas.

“As of August 2020, the company is in advanced stages of executing a binding term sheet on the terminal use agreement with AG&P to provide LNG receiving, storage and re-gasification services to the Ilijan power plant and the Ilijan expansion,” SMC Global said.

Topics: SMC Global Power Holdings Corp. , San Miguel Corp. , senior capital securities issuance
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